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Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:
| Milbank Repairs & Service |
| Unadjusted Trial Balance |
| June 30, 2019 |
| | Debit Balances | Credit Balances |
| Cash | 13,300 | | | |
| Accounts Receivable | 88,310 | | | |
| Supplies | 21,280 | | | |
| Equipment | 498,930 | | | |
| Accounts Payable | | | 20,750 | |
| Unearned Fees | | | 23,410 | |
| Nancy Townes, Capital | | | 359,000 | |
| Nancy Townes, Drawing | 17,560 | | | |
| Fees Earned | | | 532,000 | |
| Wages Expense | 123,420 | | | |
| Rent Expense | 94,160 | | | |
| Utilities Expense | 67,560 | | | |
| Miscellaneous Expense | 10,640 | | | |
| | 935,160 | | 935,160 | |
For preparing the adjusting entries, the following data were assembled:
Required:
- Fees earned but unbilled on June 30 were $9,630.
- Supplies on hand on June 30 were $7,860.
- Depreciation of equipment was estimated to be $13,300 for the year.
- The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June $18,490 of the services was provided.
- Unpaid wages accrued on June 30 were $1,700.
1. Journalize the adjusting entries necessary on June 30, 2019.
2. Determine the revenues, expenses, and net income of Milbank Repairs & Service before the adjusting entries.
| Revenues | |
| Expenses | |
| Net income | |
3. Determine the revenues, expenses, and net income of Milbank Repairs & Service after the adjusting entries.
| Revenues | |
| Expenses | |
| Net income | |
4. Determine the effect of the adjusting entries on Nancy Townes, Capital. Nancy Townes, Capital ________________
1. Journalize the adjusting entries necessary on June 30, 2019. 10 b. c. d. e
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